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Facts
The assessee appealed against the confirmation of an addition of Rs. 6,01,10,000/- u/s Section 68 of the Income Tax Act, 1961, as unexplained cash credit for Assessment Year 2018-19. The assessee argued that the loans were received in Financial Year 2016-17 (AY 2017-18), not in the year under consideration.
Held
The Tribunal, after perusing ledger accounts, found that the impugned loans were indeed taken in FY 2016-17 (AY 2017-18). Consequently, it held that the provisions of Section 68 of the Act were not applicable for AY 2018-19, and the addition was directed to be deleted.
Key Issues
The key issue was whether an addition u/s Section 68 of the Income Tax Act could be made for cash credits received in a previous financial year, not the assessment year under appeal.
Sections Cited
68
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Income Tax Appellate Tribunal, “G” BENCH, MUMBAI
Before: SHRI SAKTIJIT DEY, HON’BLE & SHRI NARENDRA KUMAR BILLAIYA, HON’BLE
O R D E R
PER NARENDRA KUMAR BILLAIYA, AM:
This appeal by the assessee is preferred against the order dated 04/07/2024 by NFAC, Delhi pertaining to AY 2018-19.
The sum and substance of the grievance of the assessee is that the ld. CIT(A) erred in confirming the addition of Rs. 6,01,10,000/- made u/s 68 of the Act as unexplained cash credit. 3. Representatives were heard at length. Case records carefully perused and the relevant documentary evidence brought on record, duly considered in the light of Rule 18(6) of the ITAT Rules, 1963. 2 4. During the course of scrutiny assessment proceedings, on perusal of 3CD report, the AO noticed that the assessee has taken loans from the following entities:-